Coinbase Delists Tether and Other MiCA Non-Compliant Stablecoins

Coinbase has announced that, starting December 13, it will be restricting European users from trading several stablecoins, including Tether (USDT), to comply with the Markets in Crypto-Assets (MiCA) regulatory framework. This move is part of Coinbase’s effort to adhere to the new European regulations, which are set to fully take effect at the end of December 2024.

The delisted stablecoins include Tether (USDT), as well as other noncompliant tokens like PAX, PYUSD, GUSD, GYEN, and Maker’s DAI. These tokens have been categorized as noncompliant under the MiCA regulations, which aim to standardize the crypto landscape in Europe. However, Coinbase will continue to support stablecoins from Circle, such as USDC and EURC, as Circle has secured a European stablecoin license under MiCA, marking a significant achievement in the space.

Coinbase also mentioned that stablecoins like Tether and the other delisted tokens may be relisted in the future if they meet MiCA compliance. However, Tether has not yet publicly responded to the delisting notice, and requests for comments were not answered at the time of reporting.

Tether’s potential exit from the European market has been a subject of speculation for several months. Although Tether CEO Paolo Ardoino stated that the company intends to continue serving users in the EU, he has not provided detailed plans regarding how the company would comply with the new MiCA regulations. The specifics of Tether’s strategy for Europe remain unclear, and it is still uncertain whether the company might exit the region by 2025.

As the largest stablecoin operator globally, with a market cap of $140 billion, Tether’s operations primarily cater to emerging markets such as Latin America and Southeast Asia. Despite this, the company has experienced significant growth in 2024, benefiting from record profits, investments in Bitcoin, mining facilities, and data centers. Additionally, Tether’s holdings in U.S. Treasury Bills may position it as a key player in the future of U.S. stablecoin policies, although the company has not disclosed specific strategies for increasing its U.S. presence.